Outline
The Bank of America Beneficiary Form is a critical document for anyone navigating the complexities of inheriting an Individual Retirement Account (IRA). This form serves as a formal mechanism for beneficiaries to claim their rights to the funds held in a deceased depositor's account, whether it be a Traditional or Roth IRA. Key sections of the form require detailed information about both the deceased account holder and the beneficiary, including names, Social Security numbers, and dates of birth. Moreover, the form emphasizes compliance with the USA PATRIOT ACT, necessitating the collection of personal details to verify identities and prevent illegal activities. Beneficiaries must also make crucial decisions regarding the distribution of funds, selecting from options such as lump-sum payments or installments based on life expectancy. It is essential to note that beneficiaries are responsible for adhering to specific deadlines, such as electing their distribution method by September 30 of the year following the account holder's death. Additionally, tax implications are an important consideration, as federal and possibly state taxes will be withheld from distributions unless otherwise elected. Given the intricacies involved, completing this form accurately and promptly is vital for beneficiaries to ensure they receive their rightful inheritance without unnecessary delays or complications.
Sample - Bank Of America Beneficiary Form
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BANK OF AMERICA, N.A. (THE “BANK”)
Traditional/Roth IRA Plan
Beneciary Distribution Election Form
1. DECEASED DEPOSITOR INFORMATION
Depositor’s Name Social Security Number
Date of Birth Plan Number
Date of Death Plan Type
Traditional IRA Roth IRA
Bank of America, like all nancial institutions, is required by the USA PATRIOT ACT to obtain, verify, and record information that identies each beneciary
of an IRA account with us. When you are a beneciary of an IRA account with us, we will ask you for your name, address and other information that will allow
us to identify you. The information we gather is for your protection and the country’s against terrorist activity and illegal money laundering schemes.
2. BENEFICIARY INFORMATION
Beneciary Name Social Security Number
Daytime Telephone Number Date of Birth Relationship to Depositor
Physical Street Address, City, State, Zip Source of Income: Employment Investment
Inheritance Retirement/Social Security
Mailing Address (If different) Employer Name (If Employment Selected)
Country of Citizenship
Country of Residency
Occupation (If Employment Selected)
Non U.S. Citizen Required Information
# of Days Present in U.S. This Year
# of Days Present in the U.S. Last Year
# of Days Present in the U.S. During Previous Year
Senior Political Figure and Politically Exposed Persons
Have you or any of your immediate family ever been elected, appointed or assumed any political position in
a National, State, or Provincial government? (Y/N) If yes, describe the position.
3. DISTRIBUTION INSTRUCTIONS
BANK OF AMERICA RECOMMENDS YOU CONTACT YOUR TAX ADVISOR BEFORE MAKING YOUR ELECTION
A beneciary of an IRA Plan should elect how to receive the proceeds of the IRA Plan no later than 09/30 of the year following the year of the IRA
Plan Depositor’s death. Any separate beneciary accounts must be established by 12/31 of the year following the IRA Plan Depositor’s death.
Available options depend on the age of the IRA Plan Depositor, the relationship of the beneciary to the IRA Depositor, and the type of IRA Plan.
SELECT ONLY ONE OF THE PAYMENT OPTIONS BELOW.
Option A.
Always
Available
Lump Sum Distribution
I elect to receive my entire portion of the IRA Plan in a single lump sum payment.
Deposit into my Bank of America
Mail check to the address above.
Checking Savings
State
Life Expectancy
Payments
I elect to receive my entire portion of the IRA Plan by taking payments over the longer of my own life
expectancy or the remaining life expectancy of the deceased IRA Plan Depositor.
Specic Amount
I elect to receive my entire portion of the IRA Plan by taking payments of
Specic Term
I elect to receive my entire portion of the IRA Plan by taking payments over
year
5-Year Payout
I elect to receive my entire portion of the IRA Plan by 12/31 of the year containing the 5
th
anniversary
of the IRA Plan Depositor’s death. (Only available if the deceased IRA Plan Depositor was under the
age of 70½ on the date of death
Option B.
Additional Options
for Spouse Only
Spouse Treat as Own
I am the spouse of the deceased IRA Plan Depositor and I elect to treat the assets of the IRA Plan as
my own IRA.
Spousal Exception
I am the spouse of the deceased IRA Plan Depositor and I elect to delay taking distributions until the
year my spouse would have reached age 70½. Date:
NOTE: Under both options, additional amounts may be withdrawn at any time.
4. RMD PAYMENT INSTRUCTIONS
You are responsible for taking your annual Required Minimum Distribution (RMD) from the IRA Plan. The Bank will not distribute your RMD unless you give the
Bank timely written distribution instructions.
The Specic Start Date is limited to any date between January 7
th
and December 28
th
. If date selected is a non-business
day, the distribution will be processed on the rst business day following the date.
Select One:
Monthly Quarterly Semi-Annually Annually Specic Start Date
Select One:
Mail check to the address above. Deposit into my Bank of America Checking Savings
Form 00-59-1289NSBW–Version 051712
.
.
.
.
:
5. TAX WITHHOLDING ELECTION
Notice of Withholding Election: Distributions you receive from your Individual Retirement Account are subject to Federal income tax
withholding and may be subject to State income tax withholding and/or Local income tax withholding based on your state and municipality of
residence unless you elect not to have withholding apply.
You are liable for Federal, and applicable State and Local income taxes on the taxable portion of your distribution. If you elect not to have withholding
apply to your distribution, or if you do not have enough tax withheld from your distribution, you may be responsible for payment of estimated taxes.
You may also incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufcient.
Withholding Election: You MUST indicate your withholding election below.
Complete if you are providing a U.S. Address:
Federal Withholding:
Important: Please note that if you do not make a withholding election, federal income tax will be automatically withheld from your
distribution at a rate of 10%.
Do not withhold federal income tax from my distribution.
Withhold federal income tax from my distribution (check one)
At a rate of 10%
At a rate of
% (must be greater than 10%)
State Withholding:
Important: State withholding may also be required in certain states when you elect federal income tax withholding. North Carolina
residents are required to use form NC-4P (Withholding Certicate for Pension or Annuity Payments) for all North Carolina state
withholding elections.
The minimum required for the state of is
Do not withhold state income tax from my distribution.
Withhold state income tax for the state of
from my distribution at the rate of %, or amount of $
Local Withholding:
Important: Local withholding may also be required in certain states.
The minimum required for the municipality of
is
Do not withhold local income tax from my distribution.
Withhold local income tax for the municipality of from my distribution at the rate of %, or amount of $
Complete if you are providing a Foreign Address:
Important: If you are a U.S. citizen or a Resident Alien with a foreign address, you may not waive the Federal withholding requirement
and you must complete Form W-9. If you are a Non-Resident Alien, all IRA distributions are subject to a tax treaty rate or 30% tax
withholding and you must complete Form W-8BEN.
I am a U.S. Citizen or Resident Alien living abroad (check one)
Withhold: At a rate of 10% At a rate of % (must be greater than 10%)
6. BENEFICIARY’S ACKNOWLEDGMENT
I acknowledge that I have read and completed this Form. I further acknowledge that neither the Bank nor its agents or employees have made any
representations to me regarding tax or any other effects of my elections/instructions on this Form, and the Bank has advised me to speak to my tax
advisor regarding my elections/instructions. I direct the Bank to effect the elections/instructions I have made on this Form and agree that the Bank and its
agents and employees have no liability for any action or inaction taken by them in reliance upon such elections/instructions.
BENEFICIARY SIGNATURE (REQUIRED) DATE
Form 00-59-1289NSBW – Version 042412
BANK OF AMERICA, N.A. (THE “BANK”)
Traditional/Roth IRA Plan
Beneciary Distribution Election Form
Informational Sheet
BANK OF AMERICA RECOMMENDS YOU CONTACT YOUR TAX ADVISOR BEFORE MAKING YOUR ELECTION
A beneciary of an IRA Plan should elect how to receive the proceeds of the IRA Plan no later than 09/30 of the year following the year of the IRA
Plan Depositor’s death. Any separate beneciary accounts must be established by 12/31 of the year following the IRA Plan Depositor’s death.
Available options depend on the age of the IRA Plan Depositor, the relationship of the beneciary to the IRA Depositor, and the type of IRA Plan.
Complete, sign and send the distribution form:
To your Local Bank of America Banking Center
Or, mail to the following address
Bank of America, N.A.
Mail code: TX2-979-02-14
P.O. Box 619040
Dallas, TX 75261-9943
:
1. DECEASED DEPOSITOR INFORMATION
Depositor’s Name — Enter the deceased person’s name
Social Security Number — Enter the deceased person’s social security number
Date of Birth — Enter the deceased person’s Date of Birth
Plan Number — Enter the deceased person’s Plan Number that is being processed
Date of Death — Enter the date of death for the account owner (deceased person
Plan type — Select the plan type of the deceased account holder
2. BENEFICIARY INFORMATION
Bank of America, like all nancial institutions, is required by the USA PATRIOT ACT to obtain, verify, and record information that identies each
beneciary of an IRA account with us. When you are a beneciary of an IRA account with us, we will ask you for your name, address and other
information that will allow us to identify you. The information we gather is for your protection and the country’s against terrorist activity and
illegal money laundering schemes.
Beneciary Name — Enter the name of the beneciary for the plan identied in the Plan Number section
Social Security Number — Enter the Social Security Number for the beneciary listed in the Beneciary Name section. If the
beneciary is an entity, enter the Employer Identication Number (EIN)
Daytime Telephone Number — Enter the best contact number that you can be reach at during the day
Date of Birth — Date of birth for the person listed in the Beneciary Name section. If the beneciary is an Entity, please list the
Date of Birth for the decedent
Relationship to the Depositor — Example, Daughter, Mother, or Father. If the beneciary is an Entity please leave this eld blank
Physical Street Address, City, State, Zip — Enter the street address for the beneciary listed in the Beneciary Name section.
Please note: This must be a physical address to comply with the USA Patriot ACT.
Source of Income — Select the appropriate option from the list provided. If the beneciary is an Entity, please select Inheritance.
Mailing Address — Complete only if different from the Physical Address listed.
Employer Name — List the beneciary’s current employer
Country of Citizenship — Enter the Country that the Beneciary is a citizen
Country of Residency — Enter the Country the Beneciary resides in
Occupation — Enter the Beneciary’s current occupation or job ONLY if employment was selected as Source of Income
Non U. S. Citizen Required Information
of Days Present in the U.S. This Year — Enter the number of days that the beneciary has been present in the U. S. for the current year
of Days Present in the U.S. Last Year — Enter the number of days that the beneciary was in the U.S. during the last calendar year
of Days Present in the U.S. Prior to the Last Year — Enter the number of days that the beneciary was in the U.S. Prior to the
last full calendar year
Senior Political Figure and Politically Exposed Person
Indicate if you should be identied as a senior political gure or politically exposed person. Provide details on the position held
or relationship.
3. DISTRIBUTION INSTRUCTIONS
Please ensure that you select only one of the payment options from the list. Selecting multiple options can delay the processing of your request.
Option A:
Lump Sum Distribution — Available to all beneciaries. This option would be a single lump sum payment of the funds directly
to the beneciary
Life Expectancy — Payments would be made over the life expectancy of the beneciary list in the Beneciary Name section
Specic Amount — Payment amounts would be disbursed as specied by the beneciary (the beneciary will be responsible
to ensure that their disbursement amount meets IRS requirements **
Specic Term — Payments will be disbursed over a specied term as elected by the beneciary (the beneciary will be
responsible to ensure that their disbursement amount meets IRS requirements **
)
)
-
.
5 year Payout — Payments will be disbursed by 12/31 of the 5
th
year post the year of death of the IRA Plan holder**
Option B (Spousal Options):
Spouse Treat as Own — An IRA plan honoring the deceased depositor’s existing IRA Plan terms would be established for
the spouse, and the account would be treated as their own.
Spousal Exception — The spouse elects to delay taking distributions until the deceased account holder would have reached 70½
**Under these methods denoted above, additional amounts may be withdrawn at any time.
Please note: If you selected any option except Lump Sum, please ensure Section 4 is completed (if applicable).
4. RMD PAYMENT INSTRUCTIONS
The Beneciary is responsible for taking their annual Required Minimum Distribution (RMD) from the IRA Plan. The Specic Start Date is
limited to any date between January 7
th
and December 28
th
. If date selected is a non-business day, the distribution will be processed on the rst
business day following the date
Please review the options carefully and select the appropriate distribution for the beneciary.
5. TAX WITHHOLDING ELECTION
Notice of Withholding Election: Distributions you receive from your Individual Retirement Account are subject to Federal income tax
withholding and may be subject to State income tax withholding and/or Local income tax withholding based on your state and municipality of
residence unless you elect not to have withholding apply.
You are liable for Federal, and applicable State and Local income taxes on the taxable portion of your distribution. If you elect not to have
withholding apply to your distribution, or if you do not have enough tax withheld from your distribution, you may be responsible for payment of
estimated taxes. You may also incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufcient.
You MUST indicate your withholding election on the form provided.
Federal Withholding:
Important: Please note that if you do not make a withholding election, federal income tax will be automatically withheld
from your distribution at a rate of 10%.
State Withholding:
Important: State withholding may also be required in certain states when you elect federal income tax withholding.
Note that North Carolina residents must use Form NC-4P (Withholding Certicate for Pension or Annuity Payments)
to elect or waive North Carolina state withholding.
Local Withholding:
Important: Local withholding may also be required in certain states.
Complete denoted section if you are providing a Foreign Address:
Important: If you are a U.S. citizen or a Resident Alien with a foreign address, you may not waive the Federal withholding
requirement and you must complete Form W-9. If you are a Non-Resident Alien, all IRA distributions are subject to a tax treaty
rate or 30% tax withholding and you must complete Form W-8BEN.
For additional questions, please contact your local Bank of America Banking Center or our customer service associates are available toll-free
at 1.888.827.1812 to answer questions and provide additional information.
Form Information
| Fact Name | Details |
|---|---|
| Form Purpose | The Bank of America Beneficiary form allows beneficiaries to elect how to receive IRA distributions after the death of the account holder. |
| Identification Requirement | Under the USA PATRIOT ACT, the bank must verify and record information identifying each beneficiary to prevent illegal activities. |
| Deadline for Election | Beneficiaries must elect how to receive proceeds by September 30 of the year following the account holder's death. |
| Distribution Options | Options include lump sum, life expectancy payments, specific amounts, and a 5-year payout, depending on the beneficiary's relationship to the deceased. |
| Required Minimum Distributions (RMD) | Beneficiaries are responsible for taking their annual RMD from the IRA and must provide written instructions to the bank. |
| Tax Withholding | Distributions are subject to federal and possibly state and local taxes unless the beneficiary opts out of withholding. |
| State-Specific Forms | North Carolina residents must use Form NC-4P for state withholding elections related to pension or annuity payments. |
Detailed Guide for Filling Out Bank Of America Beneficiary
Filling out the Bank of America Beneficiary form is a straightforward process. This form is essential for beneficiaries of an IRA account to indicate how they wish to receive their inheritance. After completing the form, it should be submitted to Bank of America either in person or by mail.
- Deceased Depositor Information: Fill in the deceased person's name, social security number, date of birth, plan number, date of death, and select the plan type (Traditional or Roth IRA).
- Beneficiary Information: Enter the beneficiary's name, social security number, daytime telephone number, date of birth, physical address, mailing address (if different), country of citizenship, country of residency, and relationship to the depositor. Select the source of income and provide employer details if applicable.
- Distribution Instructions: Choose one payment option: Lump Sum Distribution, Life Expectancy, Specific Amount, Specific Term, 5-Year Payout, or Spouse Treat as Own. Ensure only one option is selected.
- RMD Payment Instructions: Indicate how often you want to receive your Required Minimum Distribution (RMD) and select a specific start date.
- Tax Withholding Election: Specify your federal and state withholding preferences. If applicable, complete the sections for local and foreign addresses.
- Beneficiary’s Acknowledgment: Sign and date the form to acknowledge that you have read and completed it.
Once the form is filled out completely, it can be submitted to your local Bank of America banking center or mailed to the specified address. Ensure all information is accurate to avoid delays in processing your request.
Obtain Answers on Bank Of America Beneficiary
-
What is the purpose of the Bank of America Beneficiary Form?
The Bank of America Beneficiary Form is used to designate how the proceeds from a deceased person's IRA account will be distributed to their beneficiaries. This form ensures that the bank complies with federal regulations, such as the USA PATRIOT ACT, which requires the identification and verification of beneficiaries.
-
What information is required on the form?
To complete the form, you will need to provide details about both the deceased depositor and the beneficiary. This includes:
- Depositor's name, date of birth, date of death, and social security number.
- Beneficiary's name, contact information, date of birth, relationship to the depositor, and social security number.
- Details regarding the beneficiary's income source and residency status.
-
How should I submit the completed form?
You can submit the completed form either in person at your local Bank of America Banking Center or by mailing it to the designated address:
Bank of America, N.A.
Mail code: TX2-979-02-14
P.O. Box 619040
Dallas, TX 75261-9943 -
What are the distribution options available to beneficiaries?
Beneficiaries can choose from several distribution options, including:
- Lump Sum Distribution: Receive the entire amount in one payment.
- Life Expectancy Payments: Disbursements based on the beneficiary's life expectancy.
- Specific Amount Payments: Fixed payments as specified by the beneficiary.
- 5-Year Payout: Disbursements over five years, applicable if the depositor was under 70½ at death.
- Spousal Options: Spouses can treat the IRA as their own or delay distributions until reaching age 70½.
-
What is the deadline for making a distribution election?
Beneficiaries must elect how to receive the proceeds by September 30 of the year following the depositor's death. Additionally, any separate beneficiary accounts must be established by December 31 of that same year.
-
What are Required Minimum Distributions (RMDs)?
RMDs are the minimum amounts that must be withdrawn from an IRA each year. Beneficiaries are responsible for taking their annual RMDs, and they must provide timely written instructions to the bank regarding these distributions.
-
Are there tax implications for distributions?
Yes, distributions from an IRA are subject to federal income tax withholding and may also be subject to state and local taxes. Beneficiaries must indicate their withholding preferences on the form. If no election is made, federal tax will automatically be withheld at a rate of 10%.
-
What if I am a non-U.S. citizen or resident?
Non-U.S. citizens or residents must complete specific tax forms, such as Form W-8BEN, to address withholding requirements. They may also be subject to different tax treaty rates.
-
Who should I contact for assistance with the form?
If you have questions or need assistance, you can visit your local Bank of America Banking Center or call their customer service at 1.888.827.1812 for help.
Common mistakes
Filling out the Bank of America Beneficiary form can be a straightforward process, but many people make mistakes that can lead to delays or complications. One common error is failing to provide complete information. Beneficiaries often overlook sections that require specific details, such as the deceased depositor's Social Security number or the beneficiary's relationship to the depositor. Incomplete information can cause the bank to reject the form or request additional documentation, which can prolong the process.
Another frequent mistake is not selecting a payment option. The form requires beneficiaries to choose how they want to receive the proceeds, but some individuals forget this crucial step. Without a clear election, the bank may not process the request, leaving beneficiaries in limbo. It’s essential to review the payment options carefully and select only one to avoid confusion.
Many beneficiaries also neglect to double-check their personal information. Typos in names, addresses, or Social Security numbers can lead to significant issues. Even a small error can result in delays or miscommunication. Taking a moment to verify all details can save time and stress later on.
Some people mistakenly assume that tax withholding is optional. While beneficiaries can elect not to have federal or state taxes withheld, they must explicitly indicate this on the form. Failing to do so may lead to automatic withholding, which could affect the amount received. Understanding the tax implications of distributions is crucial for making informed decisions.
Another common oversight is not consulting a tax advisor before making elections. The form recommends reaching out to a tax professional, yet many beneficiaries skip this step. Without proper guidance, they may choose options that have unintended tax consequences. Consulting with an expert can provide clarity and help avoid costly mistakes.
Additionally, beneficiaries often forget to sign and date the form. A signature is required for the bank to process the request. Without it, the form is incomplete, and the beneficiary's instructions cannot be executed. This simple step is often overlooked, leading to unnecessary delays.
Some individuals may also misinterpret the RMD payment instructions. Required Minimum Distributions must be taken annually, and beneficiaries must indicate a start date for these payments. Failing to understand this requirement can result in penalties, so it’s important to read this section carefully and comply with the guidelines.
Another mistake involves not providing accurate information for non-U.S. citizens. Special requirements apply to foreign beneficiaries, including the need to complete additional forms like W-8BEN. Neglecting these requirements can complicate the process and delay distributions.
Lastly, beneficiaries often overlook the deadline for submitting the form. The form must be submitted by September 30 of the year following the depositor's death to ensure timely processing. Missing this deadline can lead to complications and may limit the options available for receiving distributions.
By being aware of these common mistakes, beneficiaries can navigate the Bank of America Beneficiary form more effectively. Taking the time to review the form and seek assistance when needed can lead to a smoother process and a better outcome.
Documents used along the form
The Bank of America Beneficiary Form is an essential document for managing the distribution of IRA assets after the account holder's death. Along with this form, several other documents may be necessary to ensure a smooth process. Below is a list of commonly used forms and documents that often accompany the Beneficiary Form.
- Form W-9: This form is required for U.S. citizens and resident aliens to provide their taxpayer identification number to the bank. It ensures proper reporting of income to the IRS.
- Form W-8BEN: Non-U.S. citizens use this form to certify their foreign status and claim any applicable tax treaty benefits. It helps determine the correct withholding rate on distributions.
- Form NC-4P: North Carolina residents must complete this form if they wish to elect or waive state income tax withholding on their distributions. It is specific to pension or annuity payments.
- Death Certificate: A certified copy of the deceased account holder’s death certificate is often required to verify the account holder's passing and initiate the distribution process.
- Proof of Identity: Beneficiaries may need to provide identification, such as a driver's license or passport, to confirm their identity and relationship to the deceased.
- Tax Advisor's Letter: While not mandatory, a letter from a tax advisor can be helpful. It provides guidance on the tax implications of the distribution options selected by the beneficiary.
Gathering these documents ahead of time can streamline the process of claiming benefits from an IRA account. Always ensure that the forms are filled out accurately to avoid delays.
Similar forms
- Beneficiary Designation Form: Similar to the Bank of America Beneficiary form, this document allows account holders to designate beneficiaries for their accounts, ensuring that assets are distributed according to their wishes after death.
- Last Will and Testament: This legal document outlines how a person's assets should be distributed upon their death, similar to how the beneficiary form specifies who receives the IRA funds.
- Trust Document: A trust can hold assets for beneficiaries, similar to how the Bank of America Beneficiary form designates beneficiaries for an IRA. Both ensure that the intended recipients receive assets according to specific instructions.
- Payable on Death (POD) Designation: This allows bank account holders to name beneficiaries who will receive funds directly upon their death, much like the beneficiary form for IRA accounts.
- Transfer on Death (TOD) Registration: This document allows individuals to transfer securities to a beneficiary upon death, similar to how the beneficiary form dictates the transfer of IRA assets.
- Retirement Account Beneficiary Designation: This form is specifically for retirement accounts, allowing account holders to name beneficiaries, just like the Bank of America Beneficiary form does for IRAs.
- Life Insurance Beneficiary Form: This document specifies who will receive the death benefit from a life insurance policy, paralleling the way the beneficiary form designates recipients for IRA distributions.
Dos and Don'ts
When filling out the Bank of America Beneficiary form, there are important steps to follow. Here’s a list of things you should and shouldn’t do:
- Do: Enter accurate information for the deceased depositor, including their name, date of birth, and social security number.
- Do: Clearly indicate your relationship to the deceased. This helps the bank process your application smoothly.
- Do: Select only one payment option for the distribution. Multiple selections can cause delays.
- Do: Review the form thoroughly before submitting it. Mistakes can lead to complications.
- Don’t: Leave any required fields blank. Incomplete forms may be returned for additional information.
- Don’t: Forget to sign and date the form. An unsigned form is not valid.
- Don’t: Ignore tax withholding options. Make sure to indicate your preference to avoid unexpected tax liabilities.
Misconceptions
- Misconception 1: The beneficiary form is optional.
- Misconception 2: All beneficiaries receive the same distribution options.
- Misconception 3: The form can be submitted at any time.
- Misconception 4: Tax withholding is not a concern.
- Misconception 5: The bank will automatically handle Required Minimum Distributions (RMDs).
- Misconception 6: Non-U.S. citizens do not need to provide additional information.
- Misconception 7: The form is the same for all types of IRAs.
- Misconception 8: Once the form is submitted, it cannot be changed.
Some individuals believe that completing the beneficiary form is not necessary. In reality, it is crucial for ensuring that the IRA assets are distributed according to the depositor's wishes after their death.
Not all beneficiaries are eligible for the same distribution options. The choices available depend on factors such as the beneficiary's relationship to the deceased and the type of IRA.
Beneficiaries must submit the form by September 30 of the year following the depositor's death. Delays in submission can lead to complications in the distribution process.
Many beneficiaries underestimate the importance of tax withholding. Distributions are subject to federal and possibly state taxes, which need to be considered when choosing how to receive funds.
Beneficiaries are responsible for taking their annual RMDs. The bank will not initiate these distributions without proper written instructions from the beneficiary.
Non-U.S. citizens are required to provide specific information regarding their presence in the U.S. This is necessary for compliance with tax regulations.
Different types of IRAs, such as Traditional and Roth, may have distinct rules and requirements. It is essential to understand these differences when completing the form.
Beneficiaries can update their election by submitting a new form. However, changes should be made promptly to avoid any delays in the distribution process.
Key takeaways
When filling out the Bank of America Beneficiary form, keep these important points in mind:
- Provide Accurate Information: Ensure that all details about the deceased depositor, including their name, date of birth, and social security number, are correct.
- Understand Beneficiary Requirements: As a beneficiary, you must provide your name, address, and other identifying information due to regulations aimed at preventing illegal activities.
- Choose Your Distribution Method: You must select only one payment option for receiving your share of the IRA. Options include a lump sum, life expectancy payments, or a specified term.
- Meet Deadlines: Make your election on how to receive proceeds by September 30 of the year following the depositor's death. Separate beneficiary accounts must be established by December 31 of that year.
- Consider Tax Implications: Distributions may be subject to federal, state, and local taxes. Decide if you want taxes withheld from your distribution to avoid potential penalties later.
- Consult a Tax Advisor: Bank of America recommends that you speak with a tax advisor before making any elections to understand the implications of your choices.
- Sign and Submit the Form: After completing the form, sign it and submit it either to your local Bank of America Banking Center or by mail to the specified address.